Who are your customers comparing your business to?

by: Michael M. Ralph | Business Consulting

When customers compare your business, they aren’t only looking at direct competitors (the businesses that sell the same product/service). They’re also stacking you up against:

Direct Competitors – Businesses offering nearly identical products or services at a similar price point.

Example: If you own a coffee shop, customers compare you to the other coffee shop

down the street.

Indirect Competitors – Businesses solving the same problem in a different way.

Example: A coffee shop isn’t just competing with other cafes—it’s competing with energy drinks, at-home brewing machines, and even tea shops.

Experience Competitors – Companies that shape customer expectations for convenience, speed, and service—even if they’re outside your industry.

Example: Amazon isn’t a direct competitor for most small businesses, but people compare your delivery speed, checkout process, and ease of returns against Amazon’s experience.

Value Comparisons – Customers will weigh whether your product or service feels worth the price compared to DIY options, free alternatives, or doing nothing at all.

So the real question becomes:

What “standard of excellence” are your customers holding you to?

For some businesses, it’s pricing. For others, it’s customer experience, convenience, or trust.

Thank you for reading.